Private labels, local brands find space in kirana stores as logistics handicap bigger FMCG firms

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Published: April 13, 2020 10:29:37 AM

Private labels and local brands have emerged as a beneficiary of the ongoing lockdown as they have now started to occupy a space in households which was earlier ruled by bigger FMCG companies.

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Private labels and local brands have emerged as a beneficiary of the ongoing lockdown as they have now started to occupy a space in households which was earlier ruled by bigger FMCG companies. As logistics and production becomes an issue, regional brands and private labels are now more readily available at kirana stores and have filled the void created by bigger firms, The Indian Express reported. The lockdown has led to about 90% of India’s trucks getting stranded on roads and the issues relating to workforce also persists. This has collectively hampered both manufacturing and transporting of essential goods.

“In order to ensure that our members can seamlessly procure essential items across categories, we have also ramped up new product development in our private brands segment and fast-tracked commercialisation of products such as sanitizers, liquid washes and bulk packs of staples,” a Walmart spokesperson told the newspaper. The US-based retail chain also said that there are challenges to secure sufficient supplies from other manufacturers.

It is not just the retail chains who have ramped up the production of in-house brands. Online grocery delivery service Grofers has also said that it is now making its own label brands in increased capacity. “We have ramped up manufacturing significantly (for our private label). With this, we are able to ensure that any shortage of supplies from large national brands is supplemented with our private labels. In times like this, direct control over supply with the manufacturer helps,” Bikram Singh Bedi, president-strategy and new initiatives, said. 

On the other hand, kirana stores and local stores are dealing with their own issues. A grocery distribution chain in Noida said that it was unable to quickly secure the supplies of a well known atta brand and to make up for that, it has stocked up on locally packed wheat flour. A similar case was also witnessed instantly after the lockdown when local manufacturers pushed hand sanitizers as demand had shot up while supplies of well-known brands were drying up.

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